Mortgage Interest Benefit Claim Form MI12

kelloggs36

TomMa wrote: »

I've recently had a run in with an MI12 form as doubtless a lot of other people have and been faced by the news that only the amount of lending that you can proove was used for the original house purchase or work carried out on the property attracts the limited assistance.

I look like being hit by the news that even with a mortgage thats lower than the rents in the locality, I'll get almost no help. The reason being that after everything is deducted that ended up on my mortgage over the years that didn't relate to the property and they calculate the interest on what remain within the interest cap of 3.65% the monthly figure will be tiny. To try to redress the issue my MI 12 lists the cost of every job I've had done in my home since I moved in at current commercial rates & the purchase price of the house, with a total at the bottom of the list. Lets see what they make of that.

Lots of people have used the security of their home to raise money to ensure that their families are financially independant, helping to get their kids through education or into homes of their own or to put money into their work to get company's through the recession. Only to find out that all they've done to be independant working families supporting state benefits through the tax system has led to the state leaving them high and dry as soon as they need the help they've supported for other people. This makes me so mad! Then, to make it even worse, if there is no equity or negative equity in the property, the claimant will end up costing the taxpayer even more by being able to claim housing benefit for the rent they will have to pay. It doesn't save money in the long term by doing this, and only encourages people to end up relying on the state long term. OP I really feel for you - all that you have worked hard for is at risk for a short-sighted policy. I really hope that you get things sorted out very soon.I have a circle of friends who, rent homes at the tax payers expense at far greater cost than my entire mortgage let alone the interest on it and it appears the system is pushing me to join them.

Why can't they just give help to family's in mortgaged property upto the limit set for families in rented property in the same circumstances?

Exactly -so short-sighed it is unbelievable!

TomMa_2

My personal situation is that I re-financed my home because I didn't want to make my staff redundant when there appeared to be hope of the economy recovering a lot quicker than it is (or isn't). I haven't got kids, I haven't been on holiday for 3 years and my car is over 1o years old. I gave examples that I felt covered the basics of my situation and the situations other people facing the situation are in.

Personally I see no reason that a single man with a mortgage shouldn't get help with the interest on it, upto the same limit that a single man paying rent would recieve and for the same reasons; that a family of 6 shoudln't get equal help weather there needs are mortgage interest or rent. Lets remember that its all means tested based on how much you've got in the bank anyway, no one's getting rich here.

cassieB57

TomMa wrote: »

My personal situation is that I re-financed my home because I didn't want to make my staff redundant when there appeared to be hope of the economy recovering a lot quicker than it is (or isn't). I haven't got kids, I haven't been on holiday for 3 years and my car is over 1o years old. I gave examples that I felt covered the basics of my situation and the situations other people facing the situation are in.

Personally I see no reason that a single man with a mortgage shouldn't get help with the interest on it, upto the same limit that a single man paying rent would recieve and for the same reasons; that a family of 6 shoudln't get equal help weather there needs are mortgage interest or rent. Lets remember that its all means tested based on how much you've got in the bank anyway, no one's getting rich here.

The main difference being, you will own your house outright and those people renting never will.

dmg24

cassieB57 wrote: »

The main difference being, you will own your house outright and those people renting never will.

You won't if you are only paying the interest.

cassieB57

dmg24 wrote: »

You won't if you are only paying the interest.[/QUOTE

Unless it is an endowment mortgage?

dmg24

cassieB57 wrote: »

Unless it is an endowment mortgage?

The endowment will need to be paid by the individual, not the government. In the case of someone on a means tested benefit without any disability premiums, they will be unable to pay into their endowment and so be unable to pay off the capital element of their mortgage.

suzannah

Hi, i cant figure out how to post a new thread, so am using the reply button.
I applied for MI12,in 2010, to be told that I am not eligible because i dont live in my home.and cant say when i will go back, I had to move to live with my boyfreind following a complete mental breakdown in december 2009.I have tried to go back there, but am still too ill too, be left alone.I am in reciept of ESA, and read somewhere that if you are too ill to live in your home, then they should still pay your interest...I cant find where i read this and would be grateful for any input..
.my building society, let me go to interest only a year ago, but my savings ran out some time ago, and now my boyfreind is subsidising me...on alorry drivers wages , two mortgages to payis damned hard.
They are now getting a bit tetchy, and i now have to send a cheque evry month instead of direct debit, as i have a;lwyas done..I have put the house on the market,hoping to sell before i get into arrears.
Any advice gratefully recived

Suzannah

DannyboyMidlands

TomMa wrote: »

Why can't they just give help to family's in mortgaged property upto the limit set for families in rented property in the same circumstances?

They will give for money borrowed to purchase the house and maintain or do it up but not for any other debts that have been lumped in with the mortgage. Fair enough really. Why should the taxpayer pick up the tab for this additional spending?